Stakeholders, lobby groups and advocates are making clear their views of the government’s shock move to pause the iZEV incentive program this week

The federal government’s decision to indefinitely pause its zero-emission vehicle rebate program on Jan. 13 is causing major uncertainty in the sector.

Unsurprisingly, the move has also been a catalyst for key industry voices to promote their agendas, goals and perspectives about the transition to electric vehicles, in general.

To capture the main positions of the various stakeholder groups Electric Autonomy has aggregated and republished their statements in entirety below.

We believe our readership will benefit from reading, for themselves, the clear industry perspectives as they make key decisions for their own interests.

Statement by Nissan Canada

At Nissan, our customers are our top priority, and we are dedicated to providing the best possible support and solutions to them. We believe that the sudden Federal government’s decision to suspend the iZEV rebate Federal program is unfair to valued customers who were in the process of purchasing an electric vehicle.

To support our ARIYA customers, we will be applying an equivalent rebate ($5,000 CAD after-tax) on all ARIYA models at all our Canadian dealerships during the month of January for those who would be affected by this sudden change. 

Statement by Electric Mobility Canada

Electric Mobility Canada (EMC) does not support this decision, as the country is well on its way to reaching and even surpassing its 20% ZEV sales target by 2026.

The pausing of this program will jeopardize this goal.

“Recently, EMC made a series of recommendations to the federal government that would ensure more Canadians have access to the iZEV program for a longer period. Now, instead of a manageable and predictable program, Canadians who want to make the switch to electric mobility are left with very little time to take advantage of the incentive, which is the exact opposite of a predictable and sustainable program for consumers and industry”, stated Daniel Breton, President and CEO of Electric Mobility Canada.

We hope that the government will consider a program renewal under new and more sustainable conditions for all Canadians like we proposed.

Statement by Global Automakers of Canada, Canadian Vehicle Manufacturers’ Association and the Canadian Automobile Dealers Association

Vehicle Manufacturers and Dealers Call for End to Electric Vehicle
Mandates, as Federal Incentives and Charging Station Commitments Fizzle

Today on Parliament Hill, Canada’s vehicle manufacturers and auto dealers formally called for the end of the federal electric vehicle sales mandates brought in by the government in 2023. The call to end the mandates comes in the wake of the federal government ending electric vehicle incentives under the federal iZEV program yesterday, and a failure to build adequate public charging infrastructure in Canada.

“Yesterday’s announcement by the federal government to halt all consumer incentives for zero-emission vehicles (ZEVs) comes at the same time as a slowdown in the buildout of public charging infrastructure. As a result of these developments, the federal government’s mandated ZEV sales targets are increasingly unrealistic and must end,” stated Brian Kingston President and CEO of the Canadian Vehicle Manufacturers’ Association.

“Mandating Canadians to buy ZEVs without providing them the supports needed to switch to electric is a made-in-Canada policy failure,” added Kingston.

“The Liberal federal government has backed away from supporting the transition to electric vehicles and now we are left with a completely unrealistic plan at the federal level. There is hypocrisy in imposing ambitious ZEV mandates and penalties on consumers when the government is showing a clear lack of motivation and support for their own policy goals,” said Tim Reuss, President and CEO of the Canadian Automobile Dealers Association.

“The end of the federal consumer EV purchase incentive program while maintaining Electric Vehicle mandates will be a disaster for consumers, dealers, manufacturers and the Canadian economy,” added Reuss.

“While incentives are not required forever, they do need to remain in place until at least price parity has largely been achieved, otherwise the largest barrier to EV adoption – price, will continue to hinder widespread adoption and put the government’s ZEV mandate targets increasingly at risk,” said David Adams, President & CEO of Global Automakers of Canada.

“If the government is going to mandate manufacturers to put ZEVs into the marketplace and pay severe penalties for not doing so, then government needs to ensure that it is doing its part to address key barriers to EV uptake – price and infrastructure. If they are not prepared to do that then the federal government (and Quebec and BC) must consider revising or eliminating their mandates as the fundamental assumptions and EV adoption rates on which the mandates were based, has changed,” added Adams.

On Parliament Hill the auto industry also pointed out the troubling lack of preparedness and foresight within the federal government by failing to secure adequate funding for the transition to electrified transportation that it actively promoted. The federal government is now the third ZEV mandate jurisdiction to significantly restrict or eliminate incentives to assist with the purchase of zero emission vehicles.

Statement by Clean Energy Canada

OTTAWA — Joanna Kyriazis, director of public affairs at Clean Energy Canada, made the following statement in response to the pause of the federal government’s EV incentive program:

“The federal government’s Incentives for Zero Emission Vehicle program has been fundamental to helping Canadians access the huge cost saving benefits of EVs. Its termination represents a big oversight—both in terms of support for Canadians in tough financial times and for our growing EV industry.

“A typical Canadian EV driver saves as much $3,000 per year compared to a gas car driver. And while many EV sticker prices are still slightly higher than comparable gas models, in many cases, the federal rebate helped the EV’s fuel and maintenance savings make up for the price difference in just a few months—compared to a few years without it. 

“The appeal to Canadians was undeniable. In October 2024 (the month with the most recent data), claims reached an all-time high as families across the country opted to skip gas for cleaner, cheaper electricity. But coupled with tariffs restricting imports of cheaper Chinese-made EVs, future EV buyers could be faced with higher sticker prices at exactly the time where EV savings matter the most.

“What’s more, Canada has rightly invested billions in our EV supply chain over recent years. Pulling the rug out from under the incentive program represents a short sighted approach—we are making it harder for Canadians to buy the very cars they are invested in making. And we are raising more barriers for our still vulnerable industry, from critical minerals to manufacturing, to compete in a world rife with fierce international competition and increasing protectionism.

“As we look to the future, we hope any future federal government seeks to reverse the decision. And in the meantime, other policies like provincial rebates and the EV availability standard will be vital to keeping costs down. The latter, in particular, is essential to ensuring automakers bring affordable models to the market in order to meet the requirements.

 “With uncertain times ahead, the benefits of EVs are more crucial than ever. And we should be helping more Canadians get behind the wheel.”